What are IRP5 and IT3(a) certificates?
IRP5 and IT3(a) certificates are the employee tax certificates a South African employer issues for each employee, showing the remuneration paid, the deductions and the employees’ tax withheld for the period. An IRP5 is issued where PAYE was deducted, and an IT3(a) where remuneration was paid but no PAYE was deducted, for example because the employee earned below the tax threshold.
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Each certificate has a unique number and uses SARS source codes for every type of income, fringe benefit and deduction, such as salary, a company car benefit and pension and medical scheme contributions, together with the PAYE, UIF and SDL figures. SARS uses the certificates to pre-populate employees’ annual income tax returns (ITR12), and employees cannot change them there, so an error on a certificate flows straight into the employee’s assessment.
Deadlines
Under paragraph 13(2) of the Fourth Schedule to the Income Tax Act, the employer must give each employee their certificate within 60 days after the end of the tax year, or within 14 days after the employee leaves or the employer stops being an employer. As a rule, certificates are given to employees only once SARS has accepted the EMP501 reconciliation they belong to; that rule does not apply when an employee dies, retires or resigns. Registered post counts as delivery where handing the certificate over is not practical.
Corrections and penalties
Financial figures on a certificate cannot simply be edited: the employer cancels the incorrect certificate and issues a new one. Every taxable fringe benefit must appear on the certificate, and leaving one out or understating it can attract a penalty of 10% of its value. Failing to deliver certificates to employees within the deadlines is a criminal offence, punishable by a fine or up to two years’ imprisonment.
Tax certificates when TopSource runs your payroll
When TopSource runs your payroll in South Africa, we generate IRP5 and IT3(a) certificates from payroll with the right source codes, include them in the EMP501 reconciliations and deliver them to employees on time, including final certificates when someone leaves.
Frequently asked questions
What is the difference between an IRP5 and an IT3(a)?
An IRP5 is issued when PAYE was deducted from an employee’s remuneration. An IT3(a) is issued when remuneration was paid but no PAYE was deducted.
When must employers issue IRP5 certificates?
Within 60 days after the end of the tax year, or within 14 days after an employee leaves.
Can an employee change their IRP5 on their tax return?
No. SARS pre-populates the return from the employer’s certificate, so corrections must come from the employer, which cancels the certificate and issues a new one.
Related terms in South Africa
- Temporary Employment Services (South Africa)
- Section 198B Fixed-Term Rule (South Africa)
- BCEA Earnings Threshold (South Africa)
- Retrenchment (South Africa)
- Restraint of Trade (South Africa)
- Family Responsibility Leave (South Africa)
- Sick Leave Cycle (South Africa)
- Employment Equity Act Reporting (South Africa)
- B-BBEE Scorecard (South Africa)
- Critical Skills Work Visa (South Africa)
- POPIA and Employee Data (South Africa)
- EMP201 Monthly Return (South Africa)
- EMP501 Reconciliation (South Africa)
- Tax Directive (South Africa)
- Fringe Benefits Tax (South Africa)
- Travel Allowance (South Africa)
- Retirement Fund Two-Pot System (South Africa)
- Employment Tax Incentive (South Africa)
- Medical Scheme Fees Tax Credit (South Africa)